Key Points
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Skipping Social Security could increase survivor benefits available to your loved ones after your death.
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Delaying Social Security benefits increases your monthly checks until you qualify for your largest benefit at 70.
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Whether this is the right move for you depends on your age and finances.
Most people want to maximize their lifetime Social Security benefits after spending decades paying into the program, but if you have family members depending on your survivor benefits after you’re gone, sometimes the right move is to avoid claiming checks altogether while you’re alive. Doing this will increase the benefit available to your family members once you’re gone.
But there’s a lot to consider when deciding whether that’s the right decision for you and your household. Here’s a closer look at how waiting to apply will affect the Social Security benefits your family members may qualify for after your death.
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How your claiming age affects your Social Security benefits
The Social Security Administration always begins by calculating the benefit you qualify for at your full retirement age (FRA). This is 67 for most workers today. Then, it adjusts that amount up or down depending on your age at the time.
Claiming early reduces your checks by five-ninths of 1% per month for up to 36 months, then five-twelfths of 1% per month thereafter. Those who sign up immediately at 62 shrink their checks by up to 30% and also permanently reduce the survivor benefits their family members will be eligible for after their deaths.
You also have the option to delay Social Security beyond your FRA. Your checks will continue growing by two-thirds of 1% per month until you qualify for your largest checks at 70. Doing this will maximize the amount any dependent family members qualify for on your work record after you’re gone.
How to decide whether to avoid claiming Social Security
There are two factors you need to weigh when deciding whether to skip Social Security to increase your family’s survivor benefits in the future. The first is whether you can afford to cover your living expenses without Social Security in the present. If doing so causes you to fall behind on bills, it could put your family under greater financial strain, which larger Social Security benefits later may not offset.
You also have to consider your age at the time. If you’re already 70 or rapidly approaching that age, there’s little incentive to delay your checks for longer. Waiting beyond 70 doesn’t increase your checks at all. Once you’ve qualified for your largest possible retirement checks, you’ve already locked in the largest possible survivor benefit for your family members.
If you’re not sure which option is best, it’s worth talking it over with family members who will be affected by your decision. Make sure they understand how your choice to apply will shape everyone’s benefits and that everyone is comfortable with the decision before you apply.
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